India weathered West Asia crisis through strategic decision-making, diplomacy: PM Modi

India successfully weathered the challenges triggered by the West Asia conflict through effective assessment and strategic, timely decision-making, efficiently using its domestic resources and strong diplomatic ties, Prime Minister Narendra Modi said on Saturday (July 4, 2026). The country avoided fuel rationing, ensured cooking gas supplies, and shielded consumers and farmers from global price spikes, with state-run oil marketing firms bearing the losses, he said.

PM Modi added that certain politically motivated entities which had engaged in rumour mongering during the crisis had failed and “may be dwelling in an abyss of disappointment”.

Speaking at the inauguration of the HPCL Rajasthan Refinery Limited (HRRL) in the Balotra district, PM Modi said, “India took potent decisions, made correct evaluations, charted effective strategies, used its domestic resources effectively and constructively leveraged its diplomatic power to successfully weather the challenges,” he said.

Refining capacity expansion

PM Modi also credited domestic refineries for helping the country wade through the crisis by upping their production of liquified petroleum gas (LPG). The country would continue expanding its refining capacity, he said.

“India has consistently increased its refining capacity and has emerged as the world’s fourth-largest refiner,” he said. “However, we will not stop here, and will continue to increase capacity in the coming years,” he added.

‘Shielded from price surge’

The Prime Minister insisted that there had not been any major supply disruptions during the crisis, even in remote areas, barring certain minor hurdles. He pointed out that India had not adopted any rationing measures for petrol and diesel, unlike certain other countries.

With regard to cooking gas, PM Modi told the gathering that prices of domestic LPG – which could have gone up to ₹2,000 per cylinder – were shielded and restricted to less than ₹950 per cylinder and ₹650 per cylinder for Ujjwala beneficiaries.

India also continued to provide urea for ₹300 per bag, though the fertilizer could have been priced at ₹3,000 per bag if it had followed the global price surge after the Russia-Ukraine conflict.

While customers were thus protected, state-owned oil marketing companies absorbed losses of about ₹75,000 crore in the June-end quarter, the Prime Minister said. “This is equivalent to the cost of building one refinery,” he noted.

‘Congress delayed refinery completion’

PM Modi accused the previous Congress government of Rajasthan of delaying the completion of the Balotra refinery, claiming that the party had not extended the necessary cooperation.

“We signed the MoU for the refinery in 2017. But from 2018 to 2023, Rajasthan had a Congress government. Due to their lack of cooperation, the work here was nearly stalled,” he said, adding that the Bharatiya Janata Party’s return to power in the State in 2023 had helped revive the project.

The greenfield integrated refinery-petrochemical complex in Rajasthan’s Balotra district holds a refining capacity of 9 million metric tonnes per annum (MMTPA) alongside 2.4 MMTPA of petrochemical capacity. It was built at a cost of ₹79,459 crore, with state-owned oil-marketing company Hindustan Petroleum owning a 74% equity stake, while the remainder is held by the Rajasthan government.

The refinery was initially scheduled to be inaugurated on April 22, but was delayed due to a fire that broke out in its crude distillation unit a day earlier.